Posts Tagged ‘purchase life insurance’

The Top Five Things you need to Know about Life Insurance

Monday, June 28th, 2010

Life insurance is the ultimate way to plan for the financial well being of your family upon your death. Most of us realize the importance of life insurance, but many of us fail to really understand the ins and outs of purchasing a life insurance policy.

With that said, there are a few things every person should know about life insurance before purchasing it. Here’s our top five:

  1. Life insurance products, like any other type of consumer good, vary significantly when it comes to price and coverage. Therefore, it is always best to shop around for the best policy and the best price. Don’t assume that premiums for similar life insurance products will be similar. Instead, take the time to research your options when it comes to life insurance. Your best bet: start your research on the Internet, as you can find many websites that compare life insurance products, side by side, for easy, one-stop shopping.

  2. Don’t make the mistake or underinsuring or overinsuring yourself. Getting the appropriate amount of life insurance is crucial; have too little life insurance and you risk leaving your loved ones with more debt than they can afford to pay off; have too much life insurance and you could be paying sky-high premiums that you may not be able to afford.

  3. Don’t hold off purchasing life insurance until you get older. Life insurance rates for healthy, young adults are rock bottom; wait just a few years and you can be sure that your premiums will be considerably higher. Why not purchase life insurance now and lock in low rates?

  4. Don’t just buy life insurance and forget about it. The life insurance product you choose today may not suit you in the future. Therefore, it is best to review you life insurance protection at least on an annual basis to ensure that the life insurance you have best suits your budget and your lifestyle.

  5. Don’t assume that the life insurance offered by your employer is adequate. Consider what would happen if you lost your job tomorrow; would your family still be protected by some kind of life insurance product? Also, consider the amount of your employer-based life insurance product; chances are that it is not significant enough to care for your family in the event of your death.

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Shopping for a Life Insurance Agent: what you need to Know

Tuesday, January 19th, 2010

Shopping for a life insurance agent may not be an easy task. After all, you are looking for a trusted individual who has plenty of experience and a proven track record of client satisfaction. It is because of these factors that you should take the time to make sure you choose the right agent through which to purchase life insurance.

Your life insurance agent should have your best interest at heart, and should understand both your needs and your desires so that the life insurance products you choose are best suited for you, your personal situation, your goals and your budget.

Your Shopping Checklist:

  • Rapport - Regardless of how much experience an insurance has in a particular area, your life insurance agent must be able to communicate well with you and be able to develop a good rapport with you. In other words, a professional relationship with a life insurance agent will simply not work if you don’t feel comfortable with him or her. Your life insurance needs are not “one size fits all,” so your agent must be able to understand your specific needs and customize life insurance policies to suit you.

  • Properly Licensed - Always check with your life insurance agent to make sure he or she has the proper license to sell insurance in your state. You may also check with your state insurance department regarding your agent’s ability to sell insurance in your state.

  • Industry Experience - The bottom line is that your life insurance agent is only as good as his or her experience in the industry.  Experience in the industry does more than show your agent’s knowledge; it clearly shows his or her commitment to the industry and his or her position. In other words, your agent’s industry experience usually means that he or she will be there for you, now and in the future.

  • Sensitivity - Your agent must be sensitive to your needs and your wishes, and must be able to help your loved ones navigate the process of claiming your life insurance policies once you pass. You owe it to your family to find a life insurance agent who will be there for them during this difficult time.

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